Canberra mum-of-two accused of fraud 'spent $30k using fake accounts'

A Canberra woman accused of setting up fake bank, health insurance and phone accounts and using them to rack up tens-of-thousands of dollars in expenses is now facing 16 additional counts of fraud.

Karen Dianne Milliken, 42, was first charged in June this year, nearly 12 months after her activity was reported to police by a close friend.

It is alleged Ms Milliken used the names of strangers and her ex-partner to create phone numbers, bank accounts, private health insurance accounts and file a tax return.

The mother-of-two allegedly used the false accounts for expenses to the tune of $30,000, including the purchase of school books and uniforms for her children and medical bills.

Karen Dianne Milliken is accused of using fake accounts to rack up expenses. (9NEWS)

Today she was charged with 16 additional counts of obtaining and attempting to obtain property by deception from two women as well as private health insurance providers Medibank and GMHBA.

Defence lawyer Peter Christensen told the court that with his client now facing 77 charges in total, they were not yet in a position to enter pleas but have made representations to prosecutors with a view toward "sorting something out".

Ms Milliken is currently in custody at the Alexander Maconochie Centre.